Organic farming practices emphasize soil health and fertility. As a natural soil amendment, granular biochar enhances soil structure, improves nutrient availability, and promotes microbial activity. It helps organic farmers maintain and improve soil fertility. Organic food production requires compliance with specific standards and regulations. Organic certifying bodies often require the use of approved inputs and practices, including organic soil amendments. Granular biochar, derived from organic sources, fulfills the requirements for organic certification. In addition, granular biochar has been shown to improve plant growth by facilitating root development and improving stress tolerance. Organic food producers prioritize plant health and natural disease resistance by minimizing synthetic pesticides and fertilizers. The use of granular biochar in organic farming contributes to the production of food that is perceived as healthier and more environmentally friendly. Thus, the growing demand for organic food products is expected to open new opportunities in the granular biochar market in the coming years.
Organic agriculture reduces nonrenewable energy use by decreasing agrochemical needs. It also contributes to mitigating the greenhouse effect and global warming through its ability to sequester carbon in the soil. In addition, people are increasingly becoming aware of the benefits of organic food and the side effects of chemicals in food production. Due to all these factors, there is an increased focus on organic farming. According to Eurostat, the European Union’s organic agricultural production area continues to increase. Organic agriculture covered 14.7 million hectares area in 2020, up from 9.5 million hectares in 2012, equivalent to a rise of 56%. As per Eurostat, in 2020, the highest shares of organic farm areas within the total utilized agricultural area (UAA) were in Austria (25%), Estonia (22%), and Sweden (20%). According to the 2023 Organic Industry Survey conducted by the Organic Trade Association, organic food sales in the US in 2022 increased to US$ 67.6 billion in 2023 from US$ 63 billion in 2022. In addition, according to the Department of Health of the State Government of Victoria, the retail value of the organic market was estimated to be at least US$ 1.58 billion in 2021. According to the IFOAM, Australia has the largest organic agricultural area (35.7 million hectares), followed by Argentina (3.6 million hectares) and China (3.1 million hectares), respectively. In addition, the sales of organic products have consistently increased over the last decades.
Various government schemes promote organic farming in different countries. In India, the government promotes organic farming through different schemes. For instance, Paramparagat Krishi Vikas Yojana promotes cluster-based organic farming with Participatory Guarantee System (PGS) certification. Another scheme, i.e., Mission Organic Value Chain Development for North Eastern Region (MOVCDNER) scheme, promotes third-party certified organic farming of niche crops in the North East region through Farmer Producer Organizations (FPOs) with a focus on exports. Thus, the growing demand from the agriculture industry is driving the granular biochar market growth.
Granular Biochar Market: Segmental Overview
On the basis of product type, the granular biochar market is divided into wood source biochar, corn and wheat source biochar, and others. In 2022, the corn and wheat source biochar segment held the largest market share, and the wood source biochar is expected to register the highest CAGR from 2022 to 2030. Wood source biochar, also known as wood-based charcoal, is produced by slow pyrolysis of hardwood biomass such as eucalyptus, sawdust, pine bark, sugarcane bagasse, and other substances that are rich in nutrients. The production of wood-sourced biochar typically involves heating the woody biomass at high temperatures in a controlled environment, releasing volatile compounds, and creating a porous and carbon-rich structure. The resulting biochar product retains a few of the carbon initially present in the wood, providing it with a stable and long-lasting form. Wood source biochar can replace coal as a fuel in power plants because of its low cost and ease of availability. Wood source biochar is commonly used in agriculture as a soil amendment to enhance soil fertility and structure.
On the basis of application, the granular biochar market is divided into soil conditioners, fertilizers, and others. In 2022, the fertilizer segment held the largest granular biochar market share, and the soil conditioner is expected to register the highest CAGR from 2022 to 2030. With its unique properties, granular biochar serves as an effective soil conditioner, enhancing various aspects of soil structure and function. The porous structure of biochar acts as a sponge, holding onto moisture and preventing waterlogged conditions in the soil. This is particularly beneficial in both arid and humid regions, as it helps optimize water use efficiency and minimizes the risk of soil erosion. The increasing problem of soil degradation and the selection of incorrect agrotechnical measures has surged the demand for biochar for soil conditioning. Intensive plant production has negatively affected the environment and soil health, which results in the production of unhealthy crops. In this case, granular biochar is used for soil conditioning as it increases soil fertility and quality.
Granular Biochar Market: Competitive Landscape and Key Developments
Cyclic Carbon Pty Ltd, Advanced Renewable Technology International Inc, CharGrow USA LLC, Airex Energy Inc, Carbonis GmbH & Co KG, Pyreg GmbH, Oregon Biochar Solutions, Arsta Eco Pvt Ltd, American BioChar Co, and BioChar6 are a few players operating in the global granular biochar market. Players operating in the market focus on providing high-quality products to fulfill customer demand.